Treace Medical Concepts (TMCI) 2024 Truist Securities MedTech Conference summary

Market evolution and growth opportunities

• Lapiplasty expanded Lapidus-type procedures from 15% to 30% of the U.S. bunion surgery market over several years.

• Minimally invasive osteotomies now account for about 10% of all bunion surgeries, with 15% penetration in the osteotomy segment.

• The company is preparing to launch two minimally invasive osteotomy platforms by late 2024, aiming for broader market coverage in 2025.

• These new platforms target the 70% of procedures currently outside the company's portfolio, representing significant growth potential.

• The market is experiencing increased competition, with more companies introducing Lapiplasty-like and MIS osteotomy products.

Product innovation and differentiation

• The new minimally invasive osteotomy systems are designed to be more reproducible and easier to use, reducing the current 40-50 case learning curve.

• Two platforms are being developed to address different surgeon philosophies and implant fixation preferences.

• The company’s approach is to offer both a market-leading Lapidus solution and a differentiated MIS osteotomy, appealing to a wider surgeon base.

• SpeedPlate, a new fixation option, has driven surgeon engagement and is used across existing procedures.

• The company’s innovation strategy has been in place for years, with early IP filings covering rotational osteotomies.

Competitive landscape and strategic response

• The market has shifted with the rapid introduction of competing Lapiplasty-like and MIS osteotomy products.

• Surgeons are testing alternative products, changing the mix of procedures and impacting volume trends.

• The company continues to add new active surgeons, but the frequency of Lapiplasty use per surgeon has shifted.

• The company is responding by expanding its product suite and targeting previously untapped surgeon segments.

• Guidance was revised after observing slower base volume in March and April, with analytics supporting the new outlook.